Question

Match each scenario with the source of monopoly market power.

Answer 1

Answer:

1. Mary McFly invents a time machine and gets legal protection from competition. Patent

2. Main Line Utilities can operate at a lower cost than multiple electric companies. Economies of Scale

3. The author of Economics for Dumbbells is given exclusive rights to produce this book. Copyright

4. Your city council gives All Talk Communication Services exclusive rights to build high speed internet infrastructure in your town.Government licencing

5. DeJeers Jewelers owns 80% of the world's diamond mines. Control over Resources

Explanation:

A monopoly is when there's only one firm operating in an industry.

Economies of scale is cost reduction that accures to a firm as a result of its large scale production. For example, a supplier might give a producer a discount for buying in bulk.

A patent is when the government or an agency of the government gives the right to produce an invention or a good for a set period, others are usually excluded making, using or selling the invention.

Copyright gives the owner of an intellectual property the exclusive right to make copies of a creative work, usually for a limited time.

If a firm has exclusive access to resocurces, it is possible for the firm to prevent other firms from entering into the industry and thus retain monopoly power.

I hope my answer helps you